MBA ECONOMICS ASSIGNMENT II
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Your answers to this assignment should include references to recently published journal articles or
books, media news as well as information on the web. Where appropriate you are encouraged to
challenge relevant economic theories providing your own justified views.
Answer EITHER
Question 1:
(i) Critically examine the effectiveness of various approaches that may be used to reduce
macroeconomic instability.
Your answer should identify and show an understanding of the various policies that a country’s
government and/or central bank may use to achieve generally accepted macroeconomic goals.
You are also encouraged to suggest your own ideas as to what should be done to more effectively
attain desired macroeconomic goals.
In your answer, you should explicitly identify macroeconomic goals that governments generally
pursue. Are these the most important or do you think governments should aim to achieve other
goals?
(You are encouraged to make use of aggregate demand/aggregate supply analysis.)
[70 marks]
(ii) Some people (especially economists) argue in favor of international free trade while others
favor protectionism. Critically examine who gains and who loses from free trade and
protectionism. Overall do you think that international free trade is a good idea?
[30 marks]
Page 2 of 2
OR
Question 2:
(i) Critically analyze the short-term and long-term effects of a large budget deficit and public
(national) debt.
In your answer, provide an explanation of what the public debt is and how it can be financed. You
should also critically evaluate the various measures that are usually recommended for reducing a
budget deficit and national debt.
(This question may be answered in light of the recent events and economic situation in countries
such as Greece, Cyprus, Portugal and Spain.)
[70 marks]
(ii) Some people (especially economists) argue in favor of international free trade while others
favor protectionism. Critically examine who gains and who loses from free trade and
protectionism. Overall do you think that international free trade is a good idea?
[30 marks]
YOU ARE REQUESTED TO WRITE AND SUBMIT A WORD DOCUMENT FILE, WHICH WILL
INCLUDE YOUR ANSWERS TO THE QUESTIONS.
Assignment Specifics:
This is an INDIVIDUAL piece of work.
Your report should be grounded in relevant theory.
Reference all sources appropriately, using the Harvard Referencing System.
The word limit of your report is 3000 (minimum) and 3500 (maximum) words.
Use Times Roman pt 12, with 1½ or double spacing.
Pages MUST be numbered.
Headings and sub-headings should be clear and visible.
The text should flow smoothly, with each section leading naturally and logically to the next.
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